Baawaa:

Sir,we shall be very glad,if you can explain to us what growth means.So we can now relate it to Nigeria's Economy Is The Third Fastest Growing In The World.

The growth being referred to here is the expansion or contraction of the nation's economy. That Nigeria's economy is growing is without a doubt; if you look around, both at government and private sector, there is clear evidence that there is growth.

The report says Nigeria grew at 7.68% last year. From what I see online, e.g. [url = http://www.mapsofworld.com/world-top-ten/world-top-ten-fastest-growing-economies-map.html]here[/url], that doesn't even put us in the Top Ten. But it is still better than that of, say, Germany, a First World Nation, which puts its GDP growth forecast at 1.8%.

The issue is, there's obviously a disconnect between the actual growth of the economy, and what the people's aspirations are. That's sadly to be expected, seeing as we are severely behind on infrastructure, security, industrialization, healthcare, etc. But then, this is economics. One way or the other, things find a balance on their own. It will be all but impossible to grow at the rates that are required to make everybody happy.

AjanleKoko: Everybody is just raking here, cos they feel the growth never touch them.
Growth doesn't stop you guys from being poor, guys. It does present an opportunity for you all to make it out of poverty.

When the environment is too stiff how is it possible to turn the growth to development? Have you venture in to new business of recent. (not commerce) real manufaturing. you will understand why people are angry. Mind you, real economy don't strive on commerce but production (manufacturing)

With my limited understanding of the subject of Economics, I know there is that Economic Growth and Economic Development are two different phenomena. A high Economic Growth does not necessarily result to Economic Development. Nigeria may even be the largest/highest growing economy but still be Economically under developed. Personally, I would prefer a country with hight Economic Development matched up with a fair Economic Growth. The standard of living, life expectancy Index, Human Happiness Index, Human Development Index etc are all embodied in Economic Development. Please, enough of these GDP-GNP talks by our ministers.

olawalebab: When the environment is too stiff how is it possible to turn the growth to development? Have you venture in to new business of recent. (not commerce) real manufaturing. you will understand why people are angry. Mind you, real economy don't strive on commerce but production (manufacturing)

Again you don't get the point. And you are wrong there, manufacturing is not necessarily the engine of economic growth. Especially these days where the likes of India, China, and Malaysia can get things done cheaper. Commerce is the end product of manufacturing, isn't it? Whatever goods produced, are you not going to sell them?

With my limited understanding of the subject of Economics, I know that Economic Growth and Economic Development are two different phenomena. A high Economic Growth does not necessarily result to Economic Development. Nigeria may even be the largest/highest growing economy but still be Economically under developed. Personally, I would prefer a country with high Economic Development matched up with a fair Economic Growth. The standard of living, life expectancy Index, Human Happiness Index, Human Development Index etc are all embodied in Economic Development. Please, enough of these GDP-GNP talks by our ministers.

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KINGwax: my friend, people living in poverty didn't cancel a growing economy. India is a case study of that. And besides, the government is not supposed to be responsible for anybody, impoverished life. We all depend of the government too much that's why we blame them for everything. As muah as i biliv and agree that the government's attitude towards making life easier through necessary infrastructures is not commendable, it isn't it's fault that some are poor. Is it the government's fault that as an okada rider u married 3wives? Or as a low salary earner u have 6children? My friend, because okoro is growing faster doesn't mean he's taller than lateef, or he'll be taller than yinka.

The government is very responsible for it's people. Go to Britain, people who have no job are placed on benefit. For every child you have you recieve child benefit. Health care is world class and it's free. Here public officials are looting every kobo they can lay their hands on. The state government cant even pay their workers. The basic amenities have become the luxruy of few. Pls don't let me go on

AjanleKoko:

Again you don't get the point. And you are wrong there, manufacturing is not necessarily the engine of economic growth. Especially these days where the likes of India, China, and Malaysia can get things done cheaper. Commerce is the end product of manufacturing, isn't it? Whatever goods produced, are you not going to sell them?

Try to understand my view point. Any economy that believe in only selling and not manufacturing is going no where. The example of countries you mention that are doing well are all manufacturing countries. The problem we face in the downstream sector of the economy where we resort to importing crude oil, is it not because of lack of manufacturing. When you help to sell an imported product. you have succeded in exporting employment and importing unemployment. An you know what will happen when an economy is facing unemployment (coupled with inflation).

Hmmm....another clear case of voodoo and juju economics in course. Who are they deceiving?

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KINGwax: my friend, people living in poverty didn't cancel a growing economy. India is a case study of that. And besides, the government is not supposed to be responsible for anybody, impoverished life. We all depend of the government too much that's why we blame them for everything. As muah as i biliv and agree that the government's attitude towards making life easier through necessary infrastructures is not commendable, it isn't it's fault that some are poor. Is it the government's fault that as an okada rider u married 3wives? Or as a low salary earner u have 6children? My friend, because okoro is growing faster doesn't mean he's taller than lateef, or he'll be taller than yinka.

The government is very responsible for it's people. Go to Britain, people who have no job are placed on benefit. For every child you have you recieve child benefit. Health care is world class and it's free. Here public officials are looting every kobo they can lay their hands on. The state government cant even pay their workers. The basic amenities have become the luxruy of few. Pls don't let me go on

Don't mind this govt.nigeria third fastest growing economy in the world,what is nigeria producing,how many people are working?jobless youths everywhere.God purnish labaran maku for all this lies.GEJs government will not achieve anything till 2015,they are stealing money everyday.infact youths its time to fight this government.since 2010 most recruitments have been pending up till now,NNPC,dpr,sec'nafdac,NEXIM bank,BOI and other parastatals,ministries,banks are laying staffs off,so how is dis useless economy picking up?

olawalebab: Try to understand my view point. Any economy that believe in only selling and not manufacturing is going no where. The example of countries you mention that are doing well are all manufacturing countries. The problem we face in the downstream sector of the economy where we resort to importing crude oil, is it not because of lack of manufacturing. When you help to sell an imported product. you have succeded in exporting employment and importing unemployment. An you know what will happen when an economy is facing unemployment (coupled with inflation).

Bros, read very well between the lines. Let's try to understand the real world paradigm: Are the developed countries really doing well? Most of them are mired in debt, have exported most of their manufacturing capacity, and face growing unemployment. They have done very well in the past, but today, the only countries that are manufacturing anything are all in Asia.

Nigeria on the contrary is subject to a lot of misinterpretation. Yes, there is tons of corruption and capital flight. However, that has not really stopped the economy from growing. A lot of people say we don't manufacture anything. . . but how true is that? Apart from fuel (which is subsidized till now) and luxury goods, what else does the average Nigerian consume that is not manufactured locally? Even food. Lots of talk about rice importation, but truth be told, how many nations do not import rice? Transportation also. Your car is definitely imported, but the Molue buses are locally-assembled. Have you considered that?

Even the non-performing government. In their nonperformance, they still build new roads (substandard), open new schools (also substandard), start new economic activities, every year. Even if they budget 2 trillion and spend only 1 trillion, mostly on OPEX, they still stimulate the economy by their activities. Even the act of sharing Ghana-must-go, the money filters into the economy, is traded for goods and services, and ends up in people's pockets. Of course, it's not the most ideal type of growth. But it is growth nonetheless.

alj harem: I think that is a lie. We have seen how the poor get poorer and the rich get richer, how can such an economy like that be a growing ?

U r still thinking?.....me,i know thats a blantant lie..its either this z an april fool trick or d man sayin such trash z crack high on some cheap weed

Ajanlekoko, hi. Thanks for your useful contributions to this blog. I am a bit confused about something, and i'd like to pick ur brains on it a little. (If you don't mind).

i'm on Y! msgr: cob2007 AT Y!cum.

Kindly drop me a line and i'll get back to you asap.

Thanks.

sorry that's Y.'come'

Thanks.

tis now i believe that nigerians are the nations worst enemy. They don't wanna see anything good about the nation and instead of making use of the abundant opportunities that abound in the land, all they do all day is to idle around and complain that the govt is not paying them benefit for lazying around. The funniest thing is that they will be the first to condemn the ones that have decided to take their destinies in the own hands (innoson motors is a good example).
They complain about high unemployment rate but would not patronise made in nigeria goods, they will prefer to sabotage the economy by smuggling in frozen foods that are not fit for consumption rather than patronising our hard working farmers and industries. And, lastly, they will be the first to come on nairaland to whine about the state of the economy. I wonder how they expect to eat their cake and have it at the same time. Bunch of hypocrites!!!

Why should we be argueing blindly in this 21st century, if u think the statistics is wrong why not goolge and back up ur claim with facts. There is a huge difference btw economic growth and economic development that is why China has been consistently leading the world in Economic growth for almost a decade now yet poor in economic development. China is currently the second largest economy in the world yet not a developed country. To the best of my knowledge the Nigerian economy has been posting a GDP growth of above 6% for the past 6yrs and that is a fact otherwise these statements would have been countered by the likes of IMF and WB. I only wish we can translate these figures to economic development.

when will they ever stop framing up lies

This statement is sinful and annoyingly controversial

Nigeria to become 30th largest economy by 2014
Monday, 09 April 2012 00:00 Patrick Atuanya & Afego Pyemo
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[Samir Gadio]

Samir Gadio

Nigeria’s expected rebasing of its Gross Domestic Product (GDP) this year, to better reflect the structure of the economy, may catapult it to the[b] 30th largest economy in the world, from its current 40th position,[/b] according to BusinessDay findings. This will increasingly make Nigeria an investment destination and boost consumer stocks with the potential increase in GDP per capita.

Most governments overhaul GDP calculations every few years to reflect changes in output and consumption, such as mobile phones and internet usage, but Nigeria has not done so since 1990, suggesting that the previous GDP framework underestimated economic activities.

When Ghana’s GDP was rebased in 2010, the size of its economy was found to be 60 percent bigger than previously recorded, $31 billion, compared to $18 billion. Nigeria ’s current nominal GDP for 2011 is $247 billion, according to data from the International Monetary Fund (IMF), and a similar 60 percent rise would bring it to $395.2 billion, making it the 30th largest economy in the world, as at the end of 2011, just behind South Africa ($422 billion), Austria ($425 billion) and Argentina ($435 billion).

The rebasing would also entrench Nigeria’s position as the second largest economy in Africa, making it likely to surpass South Africa as early as 2014.

Yvonne Mhango, analyst at Renaissance Capital (Rencap), said: “If Nigeria ’s GDP is upwardly revised by the same magnitude as Ghana ’s was in 2010, 60 percent, then we can expect Nigeria ’s economy to surpass the size of the sedately growing South African economy, as soon as 2014.”

Yvonne Mhango also notes in her research release that a bigger GDP would take Nigeria ’s consolidated tax revenues as a percentage of GDP down to 17 – 22 percent from its current level of 25 percent and lower than the average for sub-Sahara Africa , implying room for improvement.

Other macro-economic ratios will be affected too. On the positive side, Mhango predicts that Nigeria ’s public debt to GDP ratio – already lower than most countries in sub-Sahara Africa – will fall to 10.5-14.5 percent, from 17.3 percent at the end of 2011.

Samir Gadio, emerging markets strategist at Standard Bank, London, also informs in a note to BusinessDay, “Obviously, we can only speculate at this stage on the magnitude of the upward revision in Nigeria’s output and whether the other shortcomings in the existing GDP estimates will be addressed, the implication of the rebasing is that GDP per capita will subsequently increase, making Nigeria a more attractive investment case and potentially boosting consumer stocks.”

That said, Nigeria’s GDP per capita currently at $1,615 still trails those of many other economies on the African continent and while the rebasing would be an overall positive, it could also lead to lower economic ratios.

Samir Gadio explains further, that on the fiscal side, the revenue-to-GDP ratio will decline, but so will the overall fiscal position of the government.

Continuing, he said, the current account surplus will also decrease, which may not be positively perceived by offshore accounts looking at the country’s external dynamics, especially as the current account balance has already been substantially downsized in recent years in the official data, due to an unexplained increase in imports.

The new GDP figure is expected any moment from now. Yemi Kale, Statistician- General, National Bureau of Statistics (NBS), said in an interview in January, “We are still working on it. Unfortunately there was a lot of work that should have been done during the period of the fuel subsidy strike, so we have been set back by a couple of weeks. We are still hoping that we might be able to complete this before the end of the quarter, I was hoping to release this number by the last week in January”.

http://businessdayonline.com/NG/index.php/news/76-hot-topic/35666-gdp-rebasing-to-make-nigeria-30th-largest-economy-

What an ironic.

Hehehehehe, anything for the paper... junk!

I think the federal government is using this as a medium to campaign for Aunty Ngosi to get the World Bank Presidency job since she's the head of Nigeria head of economy team and Minister for finance. Hmmmm Nigerians are too brilliant. Nija I hail thee. Economy growth my foot!

Kolade Arow: Nigeria's economy has improved over years thanks to the oil sector, but this same sector is described insolvent, then what are we saying?

Yep, since the second/third quarter of 2009, Nigeria has been recorded quarterly growth rates between 7 and 8 %, attributed mostly to increase in oil production. Many of the other sectors have been experienced the same level of increase in that time though.

Yes world bank politics.

buzor:
why re u so negative u mean d figures were manipulatd or what.
i bet u dat poverty n disease is WORSE only in core north...

It has nothing to do with core or no core north here but through out Nigeria. Look around you !!!

i don't want to be left out of this growth. i've got to start making something. Imagine am selling my fishes straight from my farm. I don't go looking for buyers. My pigs are getting bigger, the market is ready. Opportunities abound in Nigeria. I'm ceasing every bit of it.

if this is right as claimed by the writer of the report, how many goods do we produce and export in nigeria? Our economy is based on ITT (international technology transfer), we import everything we use in dis country to d extend of importing rice. How can they say our economy is d 3rd fastest growing in d world when all we depend on is OIL. Even in african, nigeria is nt among d 5th fasted growing economy where places like Ghana, South Africa etc are. The government keep deceiving us 2 make us believe dat our economy is growing when all we use in nigeria is made in China, Korea, India, london, Usa etc.

Why wont the economy grow! When First bank of Nigeria charged me =N=100 for a transaction that is free of charge and it has been free of charge till now. Imagine 1 Million customers to pay =N=100, that will be N100Million in matter of seconds or minutes. We are growing on paper but no impact on citizens.
1st bank just robbed me now!

If a countries economy is the 3rd fastest growing, but the masses do not feel it, then such growth is largely worthless.
We need to diversify our economy as a matter of strict urgency. Nuff said.

Beaf: If a countries economy is the 3rd fastest growing, but the masses do not feel it, then such growth is largely worthless.
We need to diversify our economy as a matter of strict urgency. Nuff said.

Beaf, u dey talk sense here.

olawalebab: Beaf, u dey talk sense here.

Meaning all his other posts are nonsense and Rubbbbbbbbish

ITbomb:
Meaning all his other posts are nonsense and Rubbbbbbbbish

Those who wear sentiment are generally unwise, uncouth and unintelligent.